New chapter for Nanya in change of cooperation

Nanya Technology Co (南亞科技), the nation’s biggest DRAM chipmaker, yesterday said it had reached new agreements with Micron Technology Inc over wafer supply and DRAM technology.

The new agreements, also involving their joint venture Inotera Memories Inc (華亞科技), mark a new chapter for Nanya as it moves away from the standard DRAM business.

“Nanya will leverage its experiences in advanced technology development and integrate its recourses in R&D to focus on the consumer and low power products development,” spokesman Lee Pei-ing (李培瑛) said, adding that he hoped the new business model would improve its profitability.

Nanya is expected to report its fourth-quarter results on Wednesday. The company reported a net loss of NT$10.09 billion (US$348.39 million) in the third quarter, following a net loss of NT$6.68 billion in the second quarter.

Under the new deals, Nanya will only reserve a certain percentage of Inotera’s monthly output from next month through to December, while the US firm will purchase “all of Inotera’s output” beginning early this year, according to a statement. Previously, Nanya and Micron each had to purchase half of Inotera’s output.

As for the technology arrangement, Nanya will cease its DRAM technology development program with Micron, which began in 2008. Instead, it will acquire process technology from Micron with royalties in the future, the statement said.

For Inotera, Micron’s purchase price for its wafer output will be changed to a market-based arrangement rather than the previous margin-sharing method.